Bitcoin mogul Charlie Shrem pleads guilty to unlicensed business charges

A trader in the virtual currency Bitcoin has pleaded guilty to running an unlicensed money transmitting business.

BitInstant-dot-com boss Charlie Shrem admitted the charges in a New York court, along with a second trader.

The men were arrested in January and accused of selling for than one million dollars in the currency to Silk Road, an online drug marketplace. Shrem had been under house arrest in his Brooklyn home.

Both face up to five years in jail.